Engineering group delivers record results

Engineering services group Renew Holdings has delivered record results, boosted by the successful integration of QTS which it bought 18 months ago.

Pre-tax profits jumped 84% to £27m on the back of revenues increasing by 11% to £600.6m in the year to September.

The Leeds-based group operates in energy, environmental, infrastructure and residential markets, and its clients include Network Rail, Drax Power Station and Yorkshire Water.

Renew Holdings acquired Scottish rail contractor QTS Group for £80m in May 2018, and raised £45m on AIM to part-fund the deal.

Chairman David M Forbes is confident the growth will be continues because Renew is “closely aligned with the requirements of the sustained investment” in critical infrastructure.

He said: “The group’s focus remains on those markets where non-discretionary spending programmes exist to maintain critical infrastructure.

“These markets have excellent long-term prospects with growth driven by regulatory requirements.”

Its target markets in the UK, which include rail, water, nuclear decommissioning and wireless networks, have £600bn of investment planned in the decade to 2028.

Renew has 175 long-term frameworks in place, which include a seven-year decommissioning framework for nuclear fast reactor site Dounreay and a six-year civil asset management frameworks with Network Rail.

The group, which is listed on the Alternative Investment Market, has increased its dividend by 1.5p to 11.5p.